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Release Date: September 4, 2008
Release Number: 08-1223-CHI
Contact Name: Brad Mitchell or Scott Allen
Phone Number: 312.353.6976
Elgin, Illinois – The U.S. Department of
Labor has obtained a settlement restoring $14,033 owed to the Airtronics
Gage & Machine Co. 401(k) Profit-Sharing Plans as restitution for
losses resulting from violations of the Employee Retirement Income
Security Act (ERISA). The 401(k) plan was sponsored by the Air Gage Co.
and Airtronics Gage & Machine Co. in Elgin.
The companies and Jeffrey Danner, a fiduciary of the
plan, agreed to restore the assets. The department sued the defendants
for allegedly failing to remit to the plan contributions and loan
repayments deducted from employees’ paychecks at various times between
2007 and February 2008. They also allegedly remitted employee
contributions late during the period from 2001 through 2006. Those
assets were retained in the general assets of the two companies.
“The department will act when plan fiduciaries fail
to carry out their duty to protect the retirement plan assets held on
behalf of participants,” said Steve Haugen, director of the department’s
Chicago Regional Office of the Employee Benefits Security Administration
(EBSA).
Employers with similar problems, who are not yet the
subject of an investigation by EBSA, may be eligible to participate in
the department’s Voluntary Fiduciary Correction Program (VFCP).
Participation in the VFCP requires employers to make workers whole but
allows them to avoid EBSA enforcement actions and civil penalties as
well as any applicable excise taxes. For more information about the VFCP,
see www.dol.gov/ebsa.
This suit resulted from an investigation conducted by
EBSA’s Chicago Regional Office. Employers and workers can reach the
Chicago office at 312.353.0900 or through EBSA’s toll-free number,
866.444.3272, for help with problems relating to private sector
retirement and health plans. In fiscal year 2007, EBSA achieved monetary
results of $1.5 billion related to pension, 401(k), health and other
benefits for millions of American workers and their families.
Chao v. Airtronics
Civil Action Number 1:08-cv-04406
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placing your request at 202.693.7828 or TTY 202.693.7755. The Labor Department is committed to providing America's employers and
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